T-Mobile US, Inc.

NasdaqGS:TMUS Stock Report

Market Cap: US$270.6b

T-Mobile US Valuation

Is TMUS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TMUS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TMUS ($235.47) is trading below our estimate of fair value ($520.16)

Significantly Below Fair Value: TMUS is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TMUS?

Key metric: As TMUS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TMUS. This is calculated by dividing TMUS's market cap by their current earnings.
What is TMUS's PE Ratio?
PE Ratio26.3x
EarningsUS$10.37b
Market CapUS$270.63b

Price to Earnings Ratio vs Peers

How does TMUS's PE Ratio compare to its peers?

The above table shows the PE ratio for TMUS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18x
TIGO Millicom International Cellular
28.3x28.4%US$4.4b
VZ Verizon Communications
18.1x15.6%US$176.5b
T AT&T
18.5x17.3%US$163.1b
VEON VEON
7.1xn/aUS$2.2b
TMUS T-Mobile US
26.3x11.0%US$270.6b

Price-To-Earnings vs Peers: TMUS is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the peer average (18x).

Price to Earnings Ratio vs Industry

How does TMUS's PE Ratio compare vs other companies in the Global Wireless Telecom Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TMUS 26.3xIndustry Avg. 16.9xNo. of Companies9PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TMUS is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the Global Wireless Telecom industry average (16.9x).

Price to Earnings Ratio vs Fair Ratio

What is TMUS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TMUS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.3x
Fair PE Ratio31.4x

Price-To-Earnings vs Fair Ratio: TMUS is good value based on its Price-To-Earnings Ratio (26.3x) compared to the estimated Fair Price-To-Earnings Ratio (31.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TMUS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$235.47
US$238.11
+1.1%
10.7%US$265.00US$143.48n/a27
Nov ’25US$223.28
US$238.11
+6.6%
10.7%US$265.00US$143.48n/a27
Oct ’25US$206.10
US$215.83
+4.7%
10.4%US$260.00US$143.48n/a28
Sep ’25US$198.72
US$204.81
+3.1%
9.0%US$250.00US$143.48n/a28
Aug ’25US$187.07
US$202.30
+8.1%
9.1%US$250.00US$138.00n/a27
Jul ’25US$179.08
US$191.08
+6.7%
8.4%US$240.00US$138.00n/a28
Jun ’25US$174.96
US$189.27
+8.2%
8.8%US$240.00US$138.00n/a27
May ’25US$165.47
US$188.85
+14.1%
8.8%US$240.00US$137.31n/a28
Apr ’25US$162.67
US$188.06
+15.6%
9.1%US$240.00US$137.31n/a27
Mar ’25US$163.37
US$186.69
+14.3%
9.8%US$240.00US$129.91n/a28
Feb ’25US$162.50
US$185.73
+14.3%
10.0%US$240.00US$129.91n/a28
Jan ’25US$160.33
US$178.90
+11.6%
11.0%US$235.00US$129.91n/a28
Dec ’24US$152.25
US$177.51
+16.6%
11.4%US$235.00US$118.49n/a29
Nov ’24US$145.05
US$177.34
+22.3%
11.5%US$235.00US$118.49US$223.2829
Oct ’24US$140.05
US$176.65
+26.1%
11.2%US$225.00US$118.49US$206.1029
Sep ’24US$137.33
US$177.34
+29.1%
11.2%US$225.00US$115.75US$198.7230
Aug ’24US$137.26
US$177.28
+29.2%
11.2%US$225.00US$115.75US$187.0730
Jul ’24US$138.90
US$176.11
+26.8%
10.9%US$225.00US$115.75US$179.0831
Jun ’24US$138.91
US$177.28
+27.6%
10.9%US$225.00US$115.75US$174.9630
May ’24US$143.21
US$179.10
+25.1%
8.9%US$225.00US$148.00US$165.4728
Apr ’24US$144.84
US$179.85
+24.2%
9.9%US$225.00US$148.00US$162.6729
Mar ’24US$141.29
US$179.61
+27.1%
9.6%US$222.00US$148.00US$163.3729
Feb ’24US$150.97
US$179.03
+18.6%
9.6%US$222.00US$148.00US$162.5029
Jan ’24US$140.00
US$177.87
+27.0%
9.8%US$222.00US$148.00US$160.3330
Dec ’23US$151.81
US$178.00
+17.3%
9.8%US$222.00US$148.00US$152.2530
Nov ’23US$152.28
US$177.20
+16.4%
9.8%US$222.00US$148.00US$145.0530

Analyst Forecast: Target price is less than 20% higher than the current share price.

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